A holds 100 share of rs.10 each on which he has paid rs.1 per share on application.
B holds 200 share of rs.10 each on which he has paid rs.1 and rs.2 per share on application and allotment respectively.
C holds 300 share of rs.10 each and had paid rs.1 per share on application, rs.2 per share on allotment and rs 3 per share on first call.
They fail to pay their arrear and second call of rs.2 per share. Their share are forfeited.
The share of C were then reissue at rs7 per share paid up.
Jounralise the above transaction.
Answers
Explanation:
Bank A/c Dr. 600
To Share Application A/c 600
Share Application Dr. 600
To Share Capital A/c 600
Share Allotment A/c Dr. 1200
To Share Capital A/c 1200
Bank A/c Dr. 1000
Calls in Arrears A/c Dr. 200
To Share Allotment A/c 1200
Share First Call A/c Dr. 1800
To Share Capital A/c 1800
Bank A/c Dr. 900
Calls in Arrears A/c Dr. 900
To Share First Call A/c 1800
Share Second Call A/c Dr. 1200
To Share Capital A/c 1200
Calls in Arrears A/c Dr. 1200
To Share Second Call A/c 1200
Share Capital A/c Dr. 4800
To Share Forfeiture A/c 2500
To Calls in Arrears A/c 2300
Bank A/c(600×7) Dr. 4200
Share Forfeiture A/c(600×1) Dr. 600
To Share Capital A/c 4800
Share Forfeiture A/c Dr. 1900
To Capital Reserve A/c 1900